Blake and Valerie Meyer (both age 30) are married with one dependent child (age 5). On the
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• Blake’s gross salary from his corporate employer was $70,000, and his Section 401(k) contribution was $6,300.
• Valerie’s salary from GuiTech, an S corporation, was $29,400.
• Valerie owns 16 percent of GuiTech’s outstanding stock. Her pro rata share of GuiTech’s ordinary business income was $13,790, her pro rata share of GuiTech’s net loss from rental real estate was $8,100, and she received a $12,000 cash distribution from GuiTech.
• Blake received a $12,000 cash gift from his grandmother.
• Valerie won $6,400 in the Maryland state lottery.
• The Meyers received a distribution from their investment in Pawnee Mutual Fund that consisted of a $712 qualifying dividend and a $3,020 long-term capital gain.
• Blake paid $12,000 alimony to a former spouse.
• The Meyers paid $14,200 home mortgage interest on acquisition debt and $2,780 property tax on their personal residence.
• The Meyers paid $7,000 state income tax and $4,200 state and local sales tax.
• Valerie contributed $1,945 to the First Baptist Church. Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Principles Of Taxation For Business And Investment Planning 2016 Edition
ISBN: 9781259549250
19th Edition
Authors: Sally Jones, Shelley Rhoades Catanach
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